Inuvik businesses hit by MGM Energy's drilling delay

CBC.CA

This item describes some of the local economic consequences of MGM Energy's decision to halt its gas exploration program for this year.

I'm of two minds on this item. First, companies can't be expected to sink money into projects that may never produce revenue. MGM can decide where to invest its resources, and considering that they're far smaller than the major producers, they may even have to be a little more careful.

The timing does seem a little interesting, though, when you consider that we'll be seeing the JRP's report in a few months (and maybe even a leak or two before then? We can only hope). One might consider MGM's announcement--and the subsequent economic consequences for the region--to be something of a forewarning of potential longer-term consequences.

Bottom line, though, is that even if there is something of a political motive behind MGM's decision not to drill this winter, they're well within their rights to make that decision.